You want to raise worker pay, you need to RAISE corporate taxes, not lower them
Back when the top corporate rate was 90%, businesses lowered their tax burden by giving workers raises, reinvesting in their human capital. That allowed them to take a tax cut and lower their rate.
Enter Reagan, who lowered their taxes, DISINCENTIVISING corporations from giving raises. If your tax rate has been lowered 20 points and you are allowed to take the 20 points as PURE PROFIT FOR YOURSELF, why give raises, or better healthcare, or any other perks that redound to your employees? You can keep the windfall and still take any existing credits to lower your tax burden even more without the need to give your employees squat.
Today’s meme from Rs is to lower the top corporate rate from 35% to 20%, with a baldfaced lie that employers will take that 15% reduction in their tax burden and pass it on to employees in the form of raises that - in their lies - will mean an increase of $4000-9000 a year in income for the average family.
Really? Here’s how it will actually work: employers will pocket the full 15% reduction in their tax burden and pass none of it along to their employees. That’s how it has always worked since Reagan.
What’s sad is that the Rs pushing this fantasy know it’s a lie. They will use that lie to pass their legislation. Once the legislation is enacted it’s tough shit time for the workers who will see NOTHING extra in their paychecks. What they will see and hear will be their employer telling them to shut up and be thankful they even have a job.
You want to raise employee wages? Raise taxes on corporations and provide tax credits to corporations if they specifically reinvest in their businesses by giving raises to their employees.
= new reply since forum marked as read
